Clydesdale Bank is cutting a number of its residential variable mortgage rates this week, alongside previously announced changes to its large loan criteria.

The lender said it will reduce several residential variable rates from Thursday 15 January, lowering costs for borrowers on its standard and offset variable products, as well as those on discounted deals linked to its standard variable rate.

The standard variable rate will fall by 0.25% to 6.74%, while the offset variable rate will also be reduced by 0.25% to 6.89%. Two-year discounted standard variable rate products will see the same 0.25% reduction applied.

The changes come against a backdrop of wider adjustments to Clydesdale Bank’s large loan offering, introduced towards the end of last year, which expanded flexibility for borrowers with higher-value requirements.

The bank increased its maximum loan-to-value for part capital and interest, part interest-only borrowing to 85% loan-to-value on loans of up to £1.5 million.

Under the revised structure, up to 75% loan-to-value can be taken on an interest-only basis, with any borrowing above this level, up to the 85% maximum, required to be on a capital and interest basis.

Clydesdale Bank said the approach applies consistently across all repayment vehicles it accepts.

In addition, the lender removed a previous 70% loan-to-value restriction on downsizing for loans above £1.5 million.

Downsizing can now be used up to 75% loan-to-value on an interest-only basis, with any borrowing above that level taken on a capital and interest basis.